If you are a first-time home buyer, it is a good idea to understand all the costs involved before you begin your home search. There are more costs than just your mortgage payment and property taxes such as homeowners insurance, utility bills, and repairs. Here are some hidden costs that you could potentially have when owning a home.
Home repairs and cosmetic updates
If you are purchasing a resale, then more than likely there will be some things you have to fix or want to update. A survey done by Zillow reports that 65% of active home shoppers are looking for a fixer-upper. The downfall, the same data also showed that the typical home for sale will need around $30,000 worth of work. Even if it is move-in ready, on average the new homeowner will spend $26,900. The most expensive project reported was repairing or replacing the HVAC.
New Appliances
Appliances have a certain lifespan so you need to take into account the cost to replace them when they stop working. If you are purchasing a resale you will need to be mindful of the age and condition of the appliances. A refrigerator can cost up to thousands depending on all of the options. You will also need to take into account installation and delivery.
Utility Bills
Utility costs can be a shock to many first-time homebuyers. Urban area’s utilities usually include water and sewer, garbage pickup, electricity, natural gas, cable and internet and rural utilities usually include water, septic repair and maintenance, garbage pickup, electricity, propane, wood or wood pellets for heat and internet. Another rule of thumb is that larger homes cost more to heat and cool. Older homes are not as energy efficient and if they do not have updated windows or insulation, they can also be expensive to heat and cool.
Homeowner’s Insurance
This is an expense that will vary according to location and the type of coverage you purchase. Typically a homeowner can expect to pay around $35 a month for every $100,000 in home value. For example if your home is worth $300,000 you will probably pay around $105 a month for basic coverage. Note that damage due to earthquakes or flooding is not covered in standard homeowners’ insurance.
Homeowner Association Fees
If you live in a neighborhood with a Homeowner Association (HOA) then you will need to pay these dues. An HOA will enforce rules and maintain the community amenities which might include tennis courts, playground, pool, roads and landscaping. An HOA is common in condominiums, townhomes and planned single-family home communities.
When purchasing a home, remember to prepare for hidden costs. A good thing to do is look at your home inspection to see what the issues are with the home so you can determine the costs to fix them. Remember to plan for repairs and updates along the way, research home warranties and add up costs for maintenance. Getting prepared beforehand can allow you to know upfront what your monthly costs will be.
Contact Us
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Rebekah Daniels
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Wills, Quills & Sundries
P.O. Box 973
Abita Springs, LA 70420-0973
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Office: (985) 377-9465
Cell: (985) 705-8895
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[email protected]
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Hours of Operation
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Monday: 9:00AM – 6:00PM
Tuesday: 9:00AM – 6:00PM
Wednesday: 9:00AM – 6:00PM
Thursday: 9:00AM – 6:00PM
Friday: 9:00AM – 6:00PM
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Saturday & Sunday by Previously Scheduled Appointment